Leasing

Large-scale funding

Raising funds with a commercial mortgage 2% above base rate

Secured lending

‘Jigsaw’ funding

Asset refinance - letting you use existing investments again

Talk to Rangewell – the business finance experts

There are many lenders who can help you fund your woodworking business. We cover the entire market, and know the lenders - our expertise and contacts let us help you find the most competitive funding for your needs.

The woodworking industry has changed.

Not only are there new technologies that you can benefit from, there are new challenges, with concerns about the environment and increased demands for sustainability as well as worries about climate change and Co2. These changes mean that the old financial solutions are no longer adequate.

Whatever sector your woodworking business specialises in, whether you are producing furniture, building components or other products, you will be aware of many of the changes. The development of Computer Numeric Controlled (CNC) machines, for example, lets you mass-produce and reproduce products faster, with less waste and with more complex designs than ever before. Rechargeable power tools speed up work.

At the same time, you will be faced with new demands from legislation. Health and Safety is becoming ever more stringent, and you need new standards of ventilation and extraction simply to run your factory. Many products must conform to precise standards. Other challenges come from the high price of raw materials, with many traditional timbers priced out from some applications. The weak pound makes exotic timbers especially uneconomic.

Competition is high, and the demand for reduced environmental impact throughout your product’s lifecycle is growing. But with the right financial arrangements, all these new pressures can help you build a more profitable business.

At Rangewell, we know the challenges you and your woodworking operation face - and we know the financial solutions that can help provide the equipment you need, from hand tools to automated production machinery.

The tools you need may include:

Air filtration and dust collection systems

CNC routers

Biscuit joiners

Domino jointers

Chainsaws

Circular saws

Jigsaws

Miter Saws

Reciprocating Saws

Radial arm saw

Scroll Saws

Bandsaw

Electric and air powered drills

Nail gun

Router

Sanders

Combination machines

Double side and Four sided planers

Jointer and mortisers

Lathes

Panel saw

Pin router

Spindle moulder (Wood shaper)

Table saw

Tenoner

Plywood machinery

Handing equipment including conveyors

Your funding options

You may be able to set up a woodworking manufacturing business with basic tools, but a fully automated volume line will demand investment in the tens or even hundreds of thousands of pounds.

Only the largest and long-established woodworking operations have the cash reserves to equip a full production operation outright.

Fortunately, there is a range of funding options which can help you finance the equipment you need.

Asset Finance

Borrowing

Commercial Mortgages

Asset Finance

Asset Finance is a blanket term for Hire Purchase and Leasing. These solutions can help you acquire virtually any type of tool or production equipment.

Hire purchase – buying your production equipment

Hire Purchase offers a straightforward way to spread the cost of equipping your production operation. You will need to put down a deposit, typically between 5%-25% of the total price, and repay the remainder, together with the interest, over an agreed period of up to 60 months. You pay a fixed rate of interest and agreed monthly payments, making budgeting simple.

You may also have the option to structure your payments to fit your projected cash flow. For example, you can secure lower monthly repayments by agreeing to pay a final lump sum, known as a balloon payment, at the end of the loan period. This will mean that your equipment has had sufficient time to generate the funds to pay for itself when your production is fully operational.

Leasing – the equipment you need without capital costs

With a Lease, equipment is owned by the finance company and you hire it for the period of the agreement. It remains their property, avoiding any need for need for capital expenditure from you. You may also be able to choose a lease which gives maintenance and repair back to the finance company.

Monthly payments and interest rates are fixed for the duration of the contract, and you can pay for your equipment from the income it generates each month.

When production equipment becomes obsolete or surplus to your needs, you can simply return it to the finance house at the end of the lease. This makes it simpler to adopt the latest technology - helping your business maintain a competitive edge.

Asset Refinance

Asset Refinance can let you release the investment you have already made in existing equipment, and re-use the funds elsewhere in your business.

It works by letting you sell your existing equipment, your assets, to a finance company who will provide you with a cash sum which you can use as you wish. You will then make monthly repayments to buy them back.

You can continue to use the equipment while you are repaying it. You can also use Asset Refinance to replace an existing funding agreement - allowing you to reduce monthly outgoings.

Pay less than with suppliers’ finance

Woodworking equipment manufacturers and dealers will often offer HP arrangements. These can sound very attractive, and can even include 0% options. While these can look worthwhile, at Rangewell we have found that there can actually be hidden costs. You may be able to save money by paying cash, and arranging finance with our help.

Borrowing to buy

You may also be able to simply borrow funding for individual woodworking machines. Lending can provide a cost-effective solution in some circumstances - talking to a Rangewell expert will help you understand what they are.

There are two basic types of business loans, which can be used for any business purpose and can provide a simple way to funding for virtually any purpose.

Unsecured business loans can be suitable for costs up to around £25,000 and usually allow you up to 5 years to repay. Rates start at around 4.9%.

Secured loans are ‘secured’ because the lender will require security in case you cannot pay the loan back. This could be your home or your business premises. They can be used to borrow large sums, and payback can be arranged over 10 years or more. Because security reduces the risk for lenders, interest rates tend to be significantly lower than Unsecured lending. Current rates may be as low as 2% over base rate.

WHAT WE CAN DO

Find finance to allow a roof truss manufacturer to set up an automated production line

Source lease agreements for a business pioneering new uses for OSB

Set up HP for handling equipment for a SIPS panel manufacturer

Find the most competitive funding arrangement to set up a sash window making operation

Find funding for handling equipment that undercuts the 0% deals offered by dealers

Using a Commercial Mortgage to raise funds

If you own your factory or other business premises you may be able to use them to raise the funding you need for a production facility. By taking out a Commercial Mortgage on the property, you can raise a large sum which you can use for any business purpose. Repayments can be over 20 years or more.

How we help you capitalise your woodworking business

At Rangewell, we work across the entire lending industry and our finance experts have personal experience of different business sectors. Our team knows the lenders who specialise in finance for production machinery, and even those who understand the woodworking industry.

We put this knowledge to work for you, finding the most competitive deals for the equipment you need, from a single machine to a complete line.

It lets us help you find the most appropriate financial solutions you need to capitalise your business.

As well as conventional finance products, we can help you find Alternative Funding, using new loan providers and styles of funding. We know the lenders who can offer the most competitive rates for the sector. Whether you have a straightforward finance need or require a complicated ‘Jigsaw’ funding plan, made up of a combination of lending types, we have the answers you need.

Simply call us now to find out more.

What woodworking engineering manufacturers say about finding finance with Rangewell

I needed a new dust extraction system to keep the factory open. Rangewell helped find the funds.

We had a new furniture line, but we didn’t have production machinery to let us build it. Rangewell found us the answer.

We needed a custom steam bender. Rangewell found me the lenders who could help get our machine built.

Helping you build your profits

Tailored to your business

We can help set up funding to fit your business. Asset finance and other types of lending can be tailored for different funding needs.

Spread the cost of equipment

You can spread equipment costs over months or years. You may not even need a deposit.

Work with the latest equipment

You can always work with the latest and most efficient machines.

Fixed cost of ownership

Leasing can avoid the maintenance costs associated with large machinery, giving you predictable costs.

Avoid depreciation

With a lease you avoid depreciation costs. You don’t own equipment that is falling in value.

Low fixed-monthly payments

You need to keep your monthly outgoings under control. We can help you match payments to your budget.

Rangewell helps UK firms and their advisors find, compare and apply for business finance. Rangewell only provide services to limited companies based in the UK. If you are not a limited company please do not apply for finance via this website. Rangewell do not provide finance ourselves, we introduce businesses to business finance providers based on what they tell us their financing requirements are as well as their what they tell us about their circumstances, future plans and creditworthiness. Terms and conditions apply and guarantees and Indemnities may be required by the finance providers we introduce.

Rangewell Limited is a registered company in England and Wales (Company Number 09362490). Our registered office address is 2 Union Square, Darlington DL1 1GL. Information Commissioner's Office Reference ZA097601. VAT number GB225118634. Rangewell is an appointed representative of MACCapital Limited (Company No. 01267885) which are authorised and regulated by the Financial Conduct Authority (FCA Registration 742543). Our Head Office is based at 1 Fore Street, London, EC2Y 9DT.